The Financial Express: Petronet May Escape RasGas Fine

In what can be seen as a positive move for Petronet LNG, the company may not have to pay penalty to the tune of Rs 3,500 crore to Qatar’s RasGas Company for not lifting contracted gas volumes. The news not only led the shares of the company to close higher on Friday but also lifted the shares of the firms to which it supplies gas like GAIL (India), Indraprastha Gas and Gujarat State Petronet. This is because of the back-to-back agreement Petronet has with these firms and if it had to pay any fine it would have had an impact on the other firms as well.

GAIL closed up 10%, Petronet LNG 4.6%, IGL 5.16% and Gujarat State Petronet 2.2% on the BSE on Friday.

“Previously also we have seen various media articles on RasGas volume deferment issue and news on expected change in formula,” Emkay Global Financial Services said in a report. MORE